Temenos Banking Core Integrates Taurus’ Crypto Custody Solution 

• Temenos allows its banking clients to access “one-click” crypto wallets and storage solutions. 

• The software provider has fully integrated with the Taurus-PROTECT, a crypto custody platform. 

• Temenos serves over 950 banks across various sectors. 

Temenos, the global core banking software provider, has fully integrated with Taurus’ custody solution, allowing banks to seamlessly create crypto wallets and transfer assorted digital assets.  

Founded in 2018, Taurus is a Switzerland-based fintech company that provides enterprise-grade infrastructure for issuing, storing, and trading digital assets like crypto, tokenized assets, digital currencies, and non-fungible tokens (NFTs). 

In a Wednesday press release, the company said that its Taurus-PROTECT platform will allow banks to pilot their digital asset custody operations directly via Temenos core banking, which serves over 950 banks across retail, business, corporate, wealth, and payment sectors.

Taurus Expands Partnership with Temenos

According to the statement, Temenos’ move to integrate fully with Taurus-PROTECT fosters an ongoing collaboration that started in 2021 when the two companies partnered for the first time to deliver simplified access to digital assets for banking clients. 

With the latest integration, Temenos core banking clients can access “one-click” crypto wallets and addresses that seamlessly integrate with traditional accounts and support fully automated deposit, transfer, and withdrawal processes while meeting regulatory reporting requirements for digital assets. 

In addition to facilitating real-time booking and reconciliation of digital asset transfers with traditional asset transactions, Taurus-PROTECT supports the “one-click” creation of tokenized assets as part of the banks’ existing securities’ creation process. Taurus said this feature reduces manual intervention and operational risk. 

“This deep integration with Taurus provides banks with the infrastructure needed to quickly and efficiently launch digital asset services,” Alexandre Duret, Senior Product Director at Temenos, said. By providing a fully integrated system, we’re enabling our customers to offer digital assets alongside their traditional services, reducing complexity and lowering the barriers to entry.” 

The integration comes at the right time, when traditional finance institutions increasingly show interest in the Web3 industry with several initiatives, including real-world asset (RWA) tokenization, which is expected to “exceed decatrillion USD” by 2030, according to Taurus. 

How Banks Will Benefit from the Integration 

Per the statement, Temenos Core and Taurus-PROTECT custody integration allows leading global banks to launch full-scale crypto services via private or public blockchains with faster time to market and relatively lower costs. 

Besides being able to roll out crypto services in “a matter of days or weeks,” Temenos core banking clients will also tap into fully automated workflows, such as wallet management and settlements leads, to lower operating costs and mitigate unnecessary risks by reducing manual intervention. 

“This level of integration is a game-changer for financial institutions. It empowers banks to manage digital assets just like any other asset, reducing complexity while opening new avenues for growth. We look forward to launching together with Temenos many more features for our common clients.” Jürgen Hofbauer, Head of Global Strategic Partnerships at Taurus, stated. 

The development highlights a growing trend of traditional finance institutions embracing digital assets amid anticipated regulatory clarity in the U.S., where a pro-crypto administration will be inaugurated in January, and the UK, which is ushering in the markets in crypto assets regulation (MiCA). 

Banks Shift Focus to Web3 

The Temenos Core and Taurus-PROTECT integration targets various global banks that use Temenos’ platform, including Allied Bank and Commerce Bank, opening up the digital asset industry for mainstream adoption. 

Apart from Temenos’ banking clients, other global banks are also racing to integrate Web3 and blockchain technologies amid growing demand. On Wednesday, Bloomberg reported that Deutsche Bank, Germany’s largest lender, is building its own Layer 2 (L2) blockchain on Ethereum using ZKsync technology to address compliance challenges that public blockchains present in regulated finance. 

According to the report, Deutsche Bank’s L2 solution is part of Project Dama 2, which will launch as a minimum viable product next year after obtaining the necessary regulatory approvals. The Monetary Authority of Singapore (MAS) unveiled Project Dama 2 in November as part of the Project Guardian initiative, which brings together 42 financial institutions to explore blockchain-based asset tokenization. 

Bloomberg noted that Deutsche Bank’s Ethereum L2 solution will likely encourage financial institutions to interact more with decentralized networks.